Franklin Resources Inc. (BEN), manager of the Franklin and Templeton mutual funds, said fiscal second- quarter profit rose 14 percent as gains in global stock markets increased assets under management.Net income for the three months ended March 31 climbed to $572.8 million, or $2.69 a share, from $503.2 million or $2.32, a year earlier, the San Mateo, California-based company said yesterday in a statement. Franklin was expected to earn $2.51 a share, according to the average estimate of 12 analysts surveyed by Bloomberg.

Chief Executive Officer Gregory Johnson has been urging investors to put more money into stock funds, arguing that equities are likely to deliver better returns than they did in the past decade. With a lineup that is split between stocks and bonds, Franklin can benefit no matter what choices investors make, said Michael Kim, an analyst with Sandler O’Neill & Partners LP in New York.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.